Bloomberg Tax
Free Newsletter Sign Up
Login
BROWSE
Bloomberg Tax
Welcome
Login
Advanced Search Go
Free Newsletter Sign Up

Medtronic Tax Bill to Rise on New Ruling in $1.4B Fight (1)

Aug. 18, 2022, 8:49 PMUpdated: Aug. 18, 2022, 11:41 PM

Medical device manufacturer Medtronic’s tax bill is slated to go up after the US Tax Court issued a new opinion on the taxes it owes for licensing patents and other intangible property to a Puerto Rican subsidiary in 2005 and 2006.

The Thursday ruling left the exact tax bill to be computed through further proceedings, but Judge Kathleen Kerrigan increased a royalty rate that will in turn drive up the tax bill. She raised the figure to 48.8% from the 38% she had assigned in a 2016 ruling.

The 2016 ruling had ...